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University of Houston, Downtown *

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Management

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May 3, 2024

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Merritt’s Bakery Rohinder Singh ECPI MGT520 Dr. Jaime Daigle

1 Introduction In the heart of Tulsa, Oklahoma, Merritt's Bakery has risen from a humble 450-foot store to a beloved community staple. From its inception in 1979 by Larry and Bobbie Merritt, the bakery has undergone significant transformations in its labor division, organizational structure, and departmentalization. This essay dives into these changes, exploring how they have shaped the bakery's growth and success. Division and Coordination of Labor In the early days, Larry and Bobbie Merritt were the heart and soul of the bakery, with Larry mastering the art of baking and Bobbie showering each cake with her decorative mind. However, as the bakery's reputation for treats grew and so did the need for a more structured approach to labor. The first major shift came with the acquisition of a neighboring doughnut shop, which not only expanded their space but also their product range and, consequently, their team. This expansion demanded a division of labor that went beyond baking and decorating, introducing roles for front of the house operations and later, managerial positions to oversee the growing staff. This evolution from a hands on duo to a coordinated team marked the bakery's first steps towards a more formal organizational structure. Organizational Changes: Span of Control, Centralization, and Formalization As Merritt's Bakery continued to expand, the organizational dynamics shifted significantly. The span of control expanded, moving from the tight knit oversight by the Merritts to a more delegated system with managers for different departmetns. This transition was very

2 important for scalability but posed challenges in maintaining the quality and personal touch that defined Merritt's Bakery. The bakery's structure became more mechanistic over time, especially with the formalization of roles and processes. The introduction of Christian Merritt brought a new level of formalization, with standardized procedures for everything from baking to handling power outages. This formal approach ensured consistency across all locations but also raised questions about the balance between efficiency and the “spirit” of baking. Despite these changes, the bakery managed to retain a sense of family and community, suggesting a blend of mechanistic and organic elements in its structure. The mechanistic aspects are well fitting for making sure of quality and efficiency, but it's the organic elements that maintain the bakery's charm and connection with the community. Departmentalization: Functional and Beyond Merritt's Bakery employs a functional form of departmentalization, with clear divisions for production, sales, and management. This structure is very evident in the centralized production center, also referred to as "the Fort," which has streamlined operations and maintained product consistency. While functional departmentalization has served Merritt's well, there's potential for bringing in a matrix structure to hold innovation and adaptability. This type of structure could encourage collaboration across departments, leading to creative ideas / product offerings and ensuring better customer service. However, shifting to a matrix structure could also bring up some challenges, especially in maintaining the clarity of roles and responsibilities of who is in charge of who and what along

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